Customs, Excise and Gold Tribunal - Delhi
Collector Of C. Ex. vs Anupam Engineering Works on 10 June, 1999
Equivalent citations: 1999(113)ELT497(TRI-DEL)
ORDER Lajja Ram, Member (T)
1. These are three appeals filed by the Revenue being aggrieved with the common Order-in-Appeal passed by the Collector of Central Excise, Ahmedabad. The respondents are M/s. Anupam Engineering Works.
2. When the matter was called no one appeared for the respondents. As it is an old matter in which the show cause notice was issued in the year 1990, we are proceeding to deal with the matter on merits after hearing, Shri R.K. Sharma, learned SDR.
3. Shri R.K. Sharma, learned SDR submitted that the appellants had manufactured the excisable goods on behalf of their principal, M/s. Elecon Engg. Co. Limited. During the relevant time, a higher notional credit was available when the goods were supplied by the small scale assessees. M/s. Elecon supplied the raw material to the appellants and appellants returned the intermediate goods manufactured by them in place of following the procedure under Rule 57F. The appellants paid Central Excise duty and in this process, M/s. Elecon got a higher notional credit. He referred to the Grounds of Appeal and submitted that M/s. Elecon had enjoyed double benefit which was not permissible under the law.
4. We have carefully considered the submissions. We find that the Collector of Central Excise (Appeals) had followed the Tribunal decision in the case of Facit Asia Limited v. Collector of Central Excise reported in 1991 (54) E.L.T. 347 (Tribunal). The Tribunal had held in that decision that the input credit was not deniable to the manufacturer just because the job worker paid duty on the intermediate components under the normal procedure in place of returning them to the manufacturer without payment of duty. Similar view has been taken by the Tribunal in the case of Bright Steel Mac Fabrics v. Collector of Central Excise, Ahmedabad 1994 (69) E.L.T. 276 (Tribunal). The Tribunal had held that the small scale exemption was permissible for the job worker under Rule 57F(2) of the Central Excise Act, 1944 and he could return the processed goods to the suppliers of the raw material, on payment of duty after availing small scale exemption under Notification No. 175/86-C.E. and that the job worker could not be compelled to follow the option under Notification No. 214/86-C.E., dated 25-3-1986 which exempted the specific goods manufactured in a factory on job work basis out of the raw materials or semi- finished goods received from the manufacturer of the finished articles.
5. In view of the position already settled by the Tribunal in the aforesaid decisions, we do not find any infirmity in the view taken by the learned Collector of Central Excise (Appeals), Ahmedabad. We do not find any merit in these three appeals filed by the Revenue and the same are rejected.